Compensation Corner: Why Your Company Probably Needs an Employee Compensation Review
Although the word “review” can strike fear in the hearts of many, a compensation review can be a very good – and necessary – thing to keep your company competitive in the marketplace and safely in compliance. At Total Reward Solutions, we not only recognize the value of this endeavor; we also specialize in providing it as a core service to our clients. Because you are one of our valued strategic partners, we want you to know why we believe it can be essential to have a periodic compensation review:
Compliance
First and foremost, a comprehensive and professional compensation review can help you be sure that you are not at risk of running afoul of important federal and state regulations. For example, your review can substantiate your compliance (or spotlight areas of non-compliance) with:
- Fair Labor Standards Act (FLSA) Regulations (in conjunction with a Market Analysis)
- Overtime pay practices
- Appropriate tax forms, such as the W-4, W-9, etc.
- Minimum wage laws
- Generally accepted good recordkeeping practices
- Employee notification and posting requirements
- Well-defined and documented employee compensation policies
Competitiveness
With a compensation review, you will receive a summary of findings that can help you understand what actions your company needs to take concerning your compensation practices and policies. If you choose the add-on service of a Market Analysis, this can help you understand where your company is positioned compared to competitors in your industry. This can be especially important if you have a higher than desirable turnover rate and/or difficulty attracting and hiring top talent in your industry.
Confidence
Your compensation review from Total Reward Solutions can give you confidence that you are positioned to make the right moves for employee compensation and total rewards. Whether you emerge from the review with flying colors or learned you have areas for improvement, you will enjoy peace of mind knowing where you stand. From there, you can take the necessary steps to maintain or enhance your compliance and market competitiveness.
Total Reward Solutions’ 21-Point Compensation Review
As I mentioned, Total Reward Solutions offers compensation reviews as a fundamental part of our suite of services. Our reviews are strategically designed to analyze 21 key areas of your compensation plan and operations. These 21 points include these primary areas of focus:
- Philosophy
- Structure
- Market Pricing
- Merit
- Policies
- Analysis
- Litigation
- Compliance
We dive into each of these areas to analyze all relevant employee compensation factors. Our goal, of course, is to position you to avoid risks and help you achieve or maintain a confident position in your market.
The Bottom Line:
Many companies stay on course regarding employee compensation without truly knowing if the course was the right one in the first place. What’s more, many organizations only address critical areas of compliance when a regulatory agency comes calling. These practices can be costly – and can threaten the survival of the business. It doesn’t have to be that way, of course. With a compensation review from Total Reward Solutions, your company can be confident, competitive and in compliance regarding employee compensation practices. To learn more about how our 21-Point Compensation Review can help you, contact us today at 317.589.8529.
Cassandra Faurote
About Total Reward Solutions:
Have a referral for us? Total Reward Solutions is the outsourced compensation services provider dedicated to innovating total rewards that drive people and business excellence. Total Reward Solutions offers a broad range of compensation, benefits, performance management, and reward/recognition consulting services to help organizations attract top talent, motivate employees and retain top performers. Call us today at 317.589.8529 to discuss how we can help your referred organization develop and implement competitive and effective compensation and total reward programs.